During the 1990s, Canada had an average inflation rate of 1.5 ...

[naturalchemist]

During the 1990s, Canada had an average inflation rate of 1.5 percent while Columbia had an average inflation rate of 21.5 percent. You would expect that nominal interest rates in Canada are
 
  A) unpredictably different from nominal interest rates in Columbia.
  B) greater than nominal interest rates in Columbia.
  C) less than nominal interest rates in Columbia.
  D) not comparable to nominal interest rates in Columbia.
  E) equal to nominal interest rates in Columbia.

Question 2

A combination of declining real GDP and rising price level is referred to as
 
  A) a trough.
  B) deflation.
  C) stagflation.
  D) a depression.
  E) an expansion.

[jasonq]

Answer to Question 1

C

Answer to Question 2

C

[naturalchemist]

Excellent

[amcvicar]

Gracias!